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Stocks tumble on European worries, Intel warning

NEW YORK (CNNMoney) -- U.S. stocks tumbled in a broad sell-off Monday amid growing investor doubt that Europe's debt crisis will actually be resolved, and a sales warning from chipmaker Intel.

The Dow Jones industrial average (INDU) slid 163 points, or 1.3%, while the S&P 500 (SPX) lost 19 points, or 1.5%, and the Nasdaq (COMP) dropped 35 points, or 1.3%. Earlier, all three major indexes had declined about 2%.

"I think it was a sigh of relief on Friday that at least the leaders are aligned in that they want to solve this thing, but now the heavy lifting comes in," said Kim Caughey Forrest, senior equity analyst at Fort Pitt Capital Group.

Leaders of the European countries involved in the deal will have to go back and convince their politicians to pass measures that will include "all the ugly stuff that comes along with belt-tightening," said Forrest.

"It's going to be difficult to get this passed," she added. "Countries want to maintain their sovereignty and solve the crisis at the same time, so it's going to be a long slog."

Moody's "renewed call to review European sovereign debt" added pressure on the markets. Early Monday, the credit ratings agency said Friday's plan offered "few new measures" and pledged to review the credit ratings of all European Union members at the beginning of the new year.

"Moody's believes that the system remains prone to further shocks, which would likely lead to selective rating changes," wrote Moody's analysts.